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form8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): September 8, 2009

EMPLOYERS HOLDINGS, INC.

(Exact Name of Registrant as Specified in its Charter)

_____________________

NEVADA (State or Other Jurisdiction of Incorporation)	001-33245 (Commission File Number)	04-3850065 (I.R.S. Employer Identification No.)
10375 Professional Circle Reno, Nevada (Address of Principal Executive Offices)		89521 (Zip Code)
Registrant's telephone number including area code: (888) 682-6671
No change since last report (Former Name or Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 7 – Regulation FD

Item 7.01. Regulation FD Disclosure.

In connection with presentations by senior management of Employers Holdings, Inc. (the "Company") with certain analysts and investors, the Company is disclosing certain information (the "Disclosed Information").

Statements made in the Disclosed Information that are not historical are forward-looking statements that reflect management's current views with respect to future events and performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical fact. Such statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. See "Forward-looking Statements" in the Disclosed Information.

A copy of the Disclosed Information is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information set forth under "Item 7.01. Regulation FD Disclosure." and Exhibit 99.1 is intended to be furnished pursuant to Item 7.01. Such information, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. The furnishing of this information pursuant to Item 7.01 shall not be deemed an admission by the Company as to the materiality of such information.

Section 9 – Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

99.1 Presentation Materials

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	EMPLOYERS HOLDINGS, INC.

	By:	/s/ Lenard T. Ormsby
	Name:	Lenard T. Ormsby
	Title:	Executive Vice President, Chief Legal Officer and General Counsel

Dated: September 8, 2009

Exhibit Index

Exhibit No.		Exhibit
99.1		Presentation Materials

ex99-1.htm

Employers Holdings, Inc.

Keefe, Bruyette & Woods Insurance Conference

September, 2009

Overview

Business

· Specialty provider of workers’ compensation
insurance

· Coverage required by statute

Ø Medical, temporary/permanent indemnity, death

Geographic

· 30 states with concentrations in CA, FL, WI and NV

Ø Unique markets by state and area

Customers

· Small “main street” businesses

Ø Small business accounts for over 70% of new jobs

· Low-to-medium hazard exposure industries

Ø Top classes include restaurants, physicians, dentists,
clerical, retail stores

· Distribution through agents and strategic partners

$45 billion
per year
industry
(2008, A.M. Best)

Highly
focused
business
model

Operate in
74% of total
market
(2008, A.M. Best)

Key Strategies

2000

2002

2006

2007

2008

1913 - 1999
State WC
fund in NV

2000
Privatization

2007
Demutualization
and IPO - entry
into FL, IL and
OR

2002
Acquisition,
book of
business in
CA, UT, ID,
MT, CO

2005
Formation of
mutual hold co

2008
Acquisition of
AmCOMP
Incorporated,
entry into IA

2006 Entry
into TX, AZ

Other

Disciplined Risk Selection

Hazard Group A

Hazard Group B

Hazard Group C

Hazard Group D

Hazard Group E

Hazard Group F

Hazard Group G

Lower
Risk

Higher
Risk

EMPLOYERS = 87% of
Premiums Written,
Hazard Groups A - D

% of Premiums Written, 12/31/08

C	Physicians and Clerical	6.8
A	Restaurants	6.5
B	Wholesale Stores	5.1
B	Retail Stores	2.9
B	College Employees	2.7
C	Clothing Manufacturers	2.6
D	Automobile Services	2.3
C	Clerical	2.2
D	Machine Shops	2.0
C	Retail Grocery/Provisions Stores	1.8
	Total Top 10	34.9

Top 10 Classes
in 2008

NCCI
Hazard
Group

% Direct Written
Premium

Focused Guidelines and Selection within Industry-defined Classes

Superior Claims Management

Delivering Superior Loss Ratios

Consistently Lower Loss and LAE Ratios than the Industry

A.M. Best, “Aggregates and Averages”

Independent Agents and Brokers

Strategic Partnerships

Unique Distribution Network

Industry Focused

• Over 1,900 in place

• Strong relationships
with agents

• ADP

• Wellpoint

• E-chx / Granite

• Intego Services

• Wells Fargo

• Telepayroll

Physicians and restaurants
are our top two classes of
customers

• California Restaurant
Association provider of choice

• California Medical Association
sponsorship

• NFIB (National Federation of
Independent Businesses)

Increasing Points of Access

Strategic Partnerships

Strong Retention Rates

Strategic Partnerships Result in Consistently Higher Retention Rates

$ million

# policies

Increasing Market Penetration - Unit Count

Purchased
Fremont Book
of Business

Purchased
AmCOMP
Incorporated

Policy Count ‘02-’08

CAGR = 12%

NPW ‘02-’08 CAGR = 9%

Strong Capital Position

($ million)

.7 to 1
NPW/Statutory
Surplus Ratio

$355 million
extraordinary
dividends to
parent in 2008

Strong Growth in Statutory Surplus Provides a Solid Basis for Underwriting

Loss Portfolio Transfer (LPT)

Contract
	($ million)
Total Coverage	$2,000

Original Reserves (Liabilities) Transferred	$1,525
Consideration	$ 775
Gain at 1/1/2000	750
Subsequent Reserve Adjustments	(147.5)
Gain at 6/30/09	$602.5

Accounting at 6/30/09
	($ million)
Statutory Surplus Created	$602.5
Cumulative Amortization To Date	(204.6)

GAAP: Deferred Reinsurance Gain - LPT Agreement	$397.9

Youngest claim is 14 years old - 3,624 claims open as of
6/30/09 with 5% closing each year

Remaining liabilities at 6/30/09: $909.7 million

• Approximately 97% fixed maturities with
an average weighted AA rating

• Book yield of 4.7%

• Tax equivalent book yield of 5.6%

• Effective duration of 5.11

• 2008: added $418 million acquired assets

• Managed by Conning Asset Management

• Minimal impacts during challenging
markets

– Six months, 2009 OTTI of $1.9 million

– 2008 OTTI of $12.7 million

High Quality Investment Portfolio

Portfolio at 6/30/09

$2.1 billion fair market value

U.S. Treasury

Securities

7.5%

U.S. Agency

Securities

7.0%

Corporate

Securities

15.1%

States and

Municipalities

49.5%

Residential

Mortgage-

backed

Securities

15.0%

Commercial

Mortgage-

backed

Securities

1.7%

Asset-backed

Securities

0.9%

Short-term

Investments

0.4%

Equities

2.9%

History of Reserve Strength

Reserve Review

Reserve Development

Net reserves for workers’ comp industry estimated to be deficient by $6 Billion at 12/31/08 (1)

(1) NCCI, “2009 State of the Line”

Net Calendar Year Reserve Releases for
Prior Accident Years ($ million)

Track Record of Reserve Strength

YTD at
6/30/09 =
$29.2

$13.5

Prudent Capital Management

Dividends

Share
Repurchases

Investing in the Future

Returning Capital to Shareholders

Holding Company Flexibility

Over $200 million in fixed maturities

($100 million in maturing securities over the next year at subsidiaries)

Investing in operations

Investing in securities

Acquisition equity value, $189
million

$150 million Wells Fargo
secured line of credit

• $50 million due 12/31/09

Q 2 2009 expenses, excluding acquired
operations and integration/restructuring,
decreased $2.9 million in the quarter
and $4 million in 1st six months, 2009

14% staff reduction/consolidation

Extensive budget review

Consistently Profitable Underwriting

Underwriting model targets a
100% combined ratio and a 12-
13% return on a premium dollar

NOTE: LPT percentages include reserve adjustments

84.9%

72.6%

85.6%

(LPT is 10%)

(LPT is 4.9%)

(LPT is 5.2%)

91.5%

(LPT is 5.2%)

(LPT is 5.6%)

Expense ratio includes 2.0 points of non-
recurring integration costs and 1.8 points of
policyholder dividends versus 0.1 points for
six months ended June 30, 2008

(LPT is 4.0%)

102.6%

Expense ratio
on level net
earned
premium and
excluding non
-recurring
charges
would be
approximately
27.4% (see
Appendix for
calculation)

93.8

152.2

102.2

83.4

16.5

16.0

1.88

3.04

1.98

1.69

0.68

100

125

150

175

2005

2006

2007

2008

Six months ended

6/30/09

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

Net Income Before LPT

Six months ended June 30, 2009

EPS Before LPT

$ million

32.5

Continuing Profits

Net Income Before LPT 2002 - 2008 CAGR = 40%

NOTE: 50,000,002 pro forma shares prior to February 5, 2007 (IPO date)

Q 2 =

Q 1 =

Return on Average Adjusted Equity, Increasing Book
Value per Share

NOTE: 50,000,002 pro forma shares prior to February 5, 2007 (IPO date)

Return on Average Equity includes deferred gain related to the LPT - equity in the ROE calculation is averaged for the period

Trailing
12
Months
ROAAE

High Quality Reinsurance

Program Structure, Effective 7/1/09

Reinsurance Management

Reinsurers by Area

Summary of Financial Strength

Strong

Underwriting

Leverage

Conservative
Reserving

High Quality
Investment
Portfolio

Catastrophe
Reinsurance
Program

.7 to 1 Surplus to
NPW at 6/30/09

$2 billion - over 97%
invested in fixed
maturity with average
weighted rating of AA

Track record of
reserve strength:
since IPO, $160
million favorable
prior AY reserve
development as of
6/30/09

Coverage up to
$200 M loss

Key Strengths

• Established enterprise with consistently strong performance - 96 year
operating history

• Focused operations and disciplined underwriting - attractive, underserved target
market segment with growth opportunities

• Unique and long-standing strategic distribution relationships - resulting in
higher retention

• Financial strength and flexibility - strong balance sheet, conservative reserving,
negligible asset exposure to recent sub-prime market dislocations

• Experienced management team with deep knowledge of workers’
compensation - average 26 years experience with the ability to manage through
challenging operating conditions

Douglas D. Dirks
President & Chief Executive Officer
Employers Holdings, Inc.

William E. (Ric) Yocke
Chief Financial Officer
Employers Holdings, Inc.

Analyst Contact:

Vicki Erickson
Vice President, Investor Relations
Employers Holdings, Inc.
(775) 327-2794
verickson@employers.com

10375 Professional Circle
Reno, NV 89521
(775) 327-2700

Stock Ownership Limitations

● As a reminder to investors, Employers Holdings, Inc. (“EIG”) owns several insurance companies, domiciled in several
   different states. These wholly-owned insurers are regulated by insurance commissioners and are subject to the statutes and
   regulations of the various states where they are domiciled and authorized to transact insurance. As a result, EIG has the
   following stock ownership limitations, which must be satisfied prior to certain stock transactions.

● For a period of five years following the effective date of the Plan of Conversion of EIG, which is February 5, 2007, no
   person may directly or indirectly acquire or offer to acquire in any manner beneficial ownership of 5% or more of any class of
   EIG’s voting securities without the prior approval by the Nevada Commissioner of Insurance of an application for acquisition
   under Section 693A.500 of the Nevada Revised Statutes.

● Under Nevada insurance law, the Nevada Commissioner of Insurance may not approve an application for such acquisition
   unless the Commissioner finds that (1) the acquisition will not frustrate the plan of conversion as approved by our members
   and the Commissioner, (2) the board of directors of Employers Insurance Company of Nevada has approved the acquisition
   or extraordinary circumstances not contemplated in the plan of conversion have arisen which would warrant approval of the
   acquisition, and (3) the acquisition is consistent with the purpose of relevant Nevada insurance statutes to permit
   conversions on terms and conditions that are fair and equitable to the members eligible to receive consideration.

● Furthermore, any person or entity who individually or together with an affiliate (as defined by applicable law) seeks to
   directly or indirectly acquire in any manner, at any time, beneficial ownership of 5% or more of any class of EIG’s voting
   securities, will be subject to certain requirements, including the prior approval of the proposed acquisition by certain state
   insurance regulators, depending upon the circumstances involved. Any such acquisition without prior satisfaction of
   applicable regulatory requirements may be deemed void under state law.

Safe Harbor Disclosure

This slide presentation is for informational purposes only. It should be read in conjunction with our Form 10-K for the year 2008, our Form 10-Qs for the
first and second quarters of 2009 and our Form 8-Ks filed with the Securities and Exchange Commission (SEC), all of which are available on the “Investor
Relations” section of our website at www.employers.com.

Non-GAAP Financial Measures

In presenting Employers Holdings, Inc.’s (EMPLOYERS) results, management has included and discussed certain non-GAAP financial measures, as
defined in Regulation G. Management believes these non-GAAP measures better explain EMPLOYERS results allowing for a more complete
understanding of underlying trends in our business. These measures should not be viewed as a substitute for those determined in accordance with GAAP.
The reconciliation of these measures to their most comparable GAAP financial measures is included in this presentation or in our Form 10-K for the year
2008, our Form 10-Qs for the first and second quarters of 2009 and our Form 8-Ks filed with the Securities and Exchange Commission (SEC) and available
in the “Investor Relations” section of our website at www.employers.com.

Forward-looking Statements

This presentation may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements include statements regarding anticipated future results and can be identified by the fact that they do not relate strictly to historical or
current facts. They often include words like "believe”, "expect”, "anticipate”, "estimate" and "intend" or future or conditional verbs such as "will”, "would”,
"should”, "could" or "may”. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly
qualified in their entirety by these cautionary statements.

Any forward-looking statements made in this presentation reflect EMPLOYERS current views with respect to future events, business transactions and
business performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve
risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Copyright © 2009 EMPLOYERS. All rights reserved. EMPLOYERS® and America’s small business insurance specialist.® are registered trademarks of Employers Insurance
Company of Nevada. Employers Holdings, Inc. is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services focused
on select, small businesses engaged in low to medium hazard industries. The company, through its subsidiaries, operates in 30 states. Insurance subsidiaries include
Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, and Employers Assurance Company, all
rated A- (Excellent) by A.M. Best Company. Additional information can be found at: http://www.employers.com.

Appendix

Organization

Employers Holdings, Inc.

Employers

Insurance
Company

of Nevada

Employers

Compensation

Insurance

Company

Employers

Preferred

Insurance
Company

Employers

Occupational

Health, Inc.

Employers

Assurance

Company

Elite

Insurance

Services

EIG Services,
Inc.

Pinnacle

Benefits, Inc.

AmSERV,

Inc.

Employers Group, Inc.

Income Statement ($ million)	2005	2006	2007	2008	Q 1 2009	Q 2 2009
Gross Written Premium	$ 458.7	$ 401.8	$ 350.7	$ 322.9	$ 128.1	$91.0
Net Written Premium	439.7	387.2	338.6	312.8	124.7	88.3
Net Earned Premium	438.3	393.0	346.9	328.9	111.6	104.4
Net Investment Income	54.4	68.2	78.6	78.1	23.3	23.1
Net Income	137.6	171.6	120.3	101.8	20.9	20.3
Net Income Before LPT	93.8	152.2	102.2	83.4	16.5	16.0
Balance Sheet ($ million)	2005	2006	2007	2008	Q 1 2009	Q 2 2009
Total Investments	$ 1,595.8	$ 1,715.7	$ 1,726.3	$ 2,042.9	$ 2,083.2	$ 2,059.0
Cash and Cash Equivalents	61.1	80.0	149.7	202.9	190.4	217.0
Total Assets	3,094.2	3,195.7	3,191.2	3,756.7	3,764.8	3,729.0
Reserves for Loss and LAE	2,350.0	2,307.8	2,269.7	2,506.5	2,494.6	2,470.4
Shareholders’ Equity	144.6	303.8	379.5	444.7	459.9	471.1
Equity Including LPT Deferred Gain	607.0	746.8	804.5	851.3	862.2	868.9

Selected Operating Results

COMPUTATION OF ADJUSTED EXPENSE RATIO ON LEVEL PREMIUMS

			Six Months		Six Months
			Ending		Ending
			6/30/2008		6/30/2009
			(millions)
	Earned Premium
		Employers	149.7		$ 216.0
		Acquired operations	100.7*		-
			250.4	D	216.0	A

	Underwriting & Other Operating Expenses				68.9
	Policyholder Dividends				3.9

	Total Expenses				72.8	B

	Less: One-time restructuring charge		-		4.3

	Net Underwriting & Other
					$ 68.5	C

	Expense ratio				33.7%	B/A
	Adjusted Expense ratio (net)				31.7%	C/A

	Adjusted Expense ratio (net)
	on Level Premiums (six months ended 6/30/08)				27.4%	C/D

	*Based on Form 10-Q filed with the SEC in August, 2008 by AmCOMP, Incorporated

Regional Organization, Pricing Trends in 2009 at 8/31/09

MIDWEST

WESTERN

PACIFIC

Corporate Headquarters

Regional Headquarters

SOUTHEAST

States Licensed, actively writing

States Licensed, not actively writing

+10.0%

-7.8%

-16.0%

-3.8%

+3.5%

-10.0%

-18.6%

-2.4%

+3.2%

-3.1%

-5.9%

+6.4%

-2.3%

+2.8%

+0.4%

-5.1%

-5.4%

-13.0%

-7.7%

-2.9%

+9.1%

-1.4%

+6.0%

-15.0%

-15.9%

+1.7%

-12.2%

% Employers Insurance Co of NV (EICN)

% Employers Comp Ins Company (ECIC)

% Employers Assurance Co (EAC)

% Employers Preferred Insurance Co (EPIC)

-0.6%

-1.8%

-18.8%

-0.3%

-3.0%

-2.2%

-4.6%

+2.5%

+3.5%

+2.5%

-4.4%

-15.4%

-6.0%

+10.5%